Bengaluru, India – The media and technology firm founded by former U.S. President Donald Trump saw its shares plummet by up to 12% on Monday, as the company faces a sustained selloff resulting in a significant drop in Trump’s stake value to $2.9 billion. Trump Media & Technology Group’s stock has been on a downward trend after revealing substantial financial losses earlier this month, causing investor confidence to wane.
Despite a strong debut in late March, the company’s stock closed 8.4% lower at $37.17 on Monday, a stark contrast to its initial high of $79 during its market entry on March 26. The decline has now reached approximately 40% in April, posing challenges for the company’s financial outlook and Trump’s potential fundraising for future endeavors.
With around 78.75 million shares in the company, Trump has witnessed a sharp devaluation of his stake, which was valued at roughly $6 billion just last month. The total market value of Trump Media & Technology Group now stands below that mark, at approximately $5.55 billion, reflecting the ongoing downward trajectory in stock worth.
Short-sellers, who bet against the company’s stock, have welcomed the recent declines, reaping profits as the stock continues to fall. Trump Media & Technology Group has a short interest of about 4.75 million shares, equivalent to 12% of its free float, presenting opportunities for short-sellers to capitalize on the downward movement in the stock market.
Despite Monday’s decline translating to about $16 million in profits for those betting against the stock, short-sellers are still contending with a 69% loss for the year overall. The price weakness observed in Trump’s company has offset significant financing costs for short-sellers, prompting them to hold onto their positions in the trade as market dynamics continue to shift.
As the future of Trump’s media and technology venture remains uncertain amid ongoing financial challenges, the company’s performance in the coming months will likely have a substantial impact on Trump’s plans for his 2024 presidential campaign and legal obligations. The market will closely monitor the evolution of Trump Media & Technology Group as it navigates through this period of instability and economic scrutiny.